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Non-Payment Insurance Policy

27 مارس 2023

To help develop various fields, especially small projects, young people resort to borrowing money from banks to obtain a financial source that supports the project and its continuity, on the other hand, banks need to obtain an insurance policy against the risks of non-payment from the other party in order to ensure that there is a third party who pays the loan installments in case of non-payment due to certain circumstances.

A non-payment insurance policy helps banks and financial institutions reduce the risk of insolvency and increase opportunities in securing their rights, so our company strives to provide an insurance policy against non-payment risks that enables them to mitigate credit risk, support their customers, balance their portfolios and meet customer requirements at the same time.

As everyone seeks complex competitive and regulatory loans, banks and financial institutions need an intermediary they can trust to develop an insurance policy that guarantees their rights, Brokerage Insurance is the market leader in structuring and pooling non-payment and political risk insurance to manage counterparty credit risk and regulatory capital across all areas of the business.

At Brokerage Insurance, we offer you the best non-payment insurance policy with the best convenience and the lowest possible conditions to maintain bank customers and continue to invest effectively in various ways, now we show you all the details about that policy and how to benefit from it.

What loans are covered by a non-payment insurance policy?

The insurance company grants the contracting company - the entity that grants customers loans, whether a bank, financial institution or other real estate financing entity - with it compensation of a sum of money that includes the value of the remaining installments of the loan on the borrower in the event of non-payment for a period of 3 consecutive installments of the loan installments, in accordance with the conditions concluded between the two parties in the contract for the loan from which a copy is received by the insurance party, and the types of loans that an insurance policy against the risks of non-payment allows to be covered include:

  • SME loans.

  • Personal loans.

  • Car purchase loans.

  • Mortgages.

  • Microenterprise loans.

What is a non-payment insurance policy?

A non-payment insurance policy is a type of insurance policy provided by insurance companies to banks and project financiers, and this policy is based on providing the payment of loan installments on behalf of the second party who owns the loan, in cases such as:

  • Death.

  • Permanent total disability resulting in loss of mobility or functioning.

  • The insurance company pays these installments on behalf of the family of the loan holder which is responsible for repaying the loan in this case of default.

What are the terms of the non-payment insurance policy?

The most important feature of an insurance policy against the risks of non-payment is that it bears the financial burden of paying premiums in cases of:

  • Natural death or died as a result of a particular accident.

  • In cases of unnatural death such as "death due to homicide", the insurance company commits to pay the rest of the loan installments to the bank, with a prerequisite that the killer is not the beneficiary of the payment of the premiums.

  • In the event of death as a result of the customer's suicide, the insurance company will also pay the loan installments with the condition that at least two years have not passed before the suicide.

  • During the conclusion of an insurance policy against the risk of non-payment, the insurance company sets the following conditions:

  • In the event that the loan amount exceeds 250 thousand pounds, in that case, the insurance companies request a full medical examination on the loan owner, and if it turns out that the customer has any chronic disease, the insurance company may refuse to issue a policy, and if the value of the loan is less than 250 thousand pounds, the insurance company may be satisfied with the signature of the loan owner on a declaration confirming that he does not have any chronic disease.

  • The price of a non-payment insurance policy varies from loan to loan depending on the age of the loan holder, and the minimum permissible percentage of the loan is 3 per thousand of the total loan value.

How does the Brokerage team help you get a non-payment insurance policy?

Our team works with you from the beginning of the procedure to the end, from obtaining an appropriate document from structuring to claims management and obtaining loan repayment approvals in the aforementioned cases.

Our claims team has extensive experience in settling claims in this type of policy, in addition to a support team through the phone and hotline that follows you on the developments of the event in real-time.

We combine specialist knowledge, scale, and strong influence among insurance companies to provide competitive and robust solutions to our large customer base, as our specialists are also actively involved in educating the loan market using insurance products.

What are the advantages of obtaining a non-payment insurance policy?

We are committed to providing customers with the highest quality of service through everything we do, and our most important advantages depend on:

  • The responsiveness from our team.

  • Comprehensive coverage of the insurance market against the risk of non-payment.

  • Get the best possible conditions.

  • Precise and clear communications regarding all insurance negotiations.

  • Proven track record in successful claims payment.

Banks are most likely looking for a third party to provide them with the idea of paying the allowances to the loan holder in the event of insolvency for any of the reasons mentioned earlier, hence an insurance policy against the risks of non-payment has become an urgent necessity in the event of obtaining a loan for various reasons.

Therefore, Brokerage decided to help all project applicants and take responsibility to banks in the event of non-payment due to certain circumstances, on the other hand, the customer service team supports policyholders around the clock by answering their call via the hotline as well as by approving claims submitted by stakeholders, so if you need an intermediary that guarantees you the obligation to pay the installments of the loans granted to him, do not hesitate to choose Brokerage Insurance immediately.

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